April 2, 2014 / 1:11 PM / 4 years ago

Hungary's OTP bank nears takeover of German-controlled MKB -sources

FRANKFURT, April 2 (Reuters) - Hungary’s biggest bank OTP is moving closer to purchasing loss-making bank MKB from German state-backed lender BayernLB, three sources close to the matter said on Wednesday.

Both OTP and public sector bank BayernLB have engaged in intense talks in recent weeks and are likely to reach an accord, the sources said. One of the unresolved questions separating the parties from a deal is the price, one of the sources said.

Any purchase would help OTP to consolidate its position as Hungary’s biggest bank and conform to government plans to move banking assets from foreign into domestic hands.

Selling MKB would also be a huge step forward for BayernLB, whose results have been burdened by the loss-making Hungarian unit. (Reporting by Andreas Kroener; Additional reporting by Marton Dunai in Budapest and Arno Schuetze in Frankfurt; Writing by Thomas Atkins; Editing by Victoria Bryan)

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